Commodities markets summary

World oil prices surged after crude inventories unexpectedly fell from a record high in the US, suggesting better demand in the world's largest crude consumer.

The US benchmark, West Texas Intermediate for delivery in June, jumped $1.27 from Tuesday to close at $100.77 a barrel.

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Brent North Sea crude for June gained $1.07 at $108.13 a barrel in London.

The US Department of Energy (DoE) announced that American crude reserves sank by 1.8 million barrels in the week to May 2, confounding market expectations of a gain of 1.2 million barrels.

PRECIOUS METALS

Gold prices fell after Federal Reserve Chair Janet Yellen told Congress the US economy was on track for solid growth.

Gold for June delivery, the most active contract, on Wednesday fell $US19.70, or 1.5 per cent, to settle at $US1,288.90 a troy ounce on the Comex division of the New York Mercantile Exchange.

Other precious metals also retreated, with platinum and palladium tumbling as voters in South Africa headed to the polls for the country's general elections.

Palladium for June delivery settled at a two-week low, falling $US21.70, or 2.7 per cent, to $US796.70 a troy ounce on the Nymex, while platinum for July delivery fell 1.6 per cent to $US1,434.80 a troy ounce.

BASE METALS

Copper futures closed lower on the London Metal Exchange (LME), weighed by concern over Chinese demand for the metal.

The LME's flagship three-month copper contract on Wednesday was down 1.0 per cent at $US6,654.50 a metric ton at the close of open-outcry trading.

The HSBC's recent China services Purchasing Managers' Index fell to 51.4 in April from 51.9 in March.

Chinese trade balance data are due out on Thursday. Chinese exports are expected to remain in negative territory at around 3.5 per cent below last April's figure, according to the median forecast of 20 economists surveyed by The Wall Street Journal, compared with a 6.6 per cent year-over-year contract in March.

Meanwhile, imports likely fell 3.2 per cent from last year, following an 11.3 per cent drop in March.